Dear Readers,
Mahendras has started special quizzes for SBI Clerk examination so that you can practice more and more to crack the examination. This SBI Clerk special quiz series will mold your preparations in the right direction and the regular practice of these quizzes will be really very helpful in scoring good marks in the Examination. Here we are providing you important question of English Language for SBI Clerk 2020 Exam.
Read the following passage carefully and answer the questions given below it. Certain words have been given in bold to help you locate them while answering some question.
A major high street bank has paved the way for the introduction of negative interest rates for the first time in Britain by warning customers it may have to charge them to accept deposits. The warning by NatWest was made in a letter changing the terms and conditions for the bank’s E0,000 business customers, which range from self-employed traders, charities and clubs to big corporations. It could mean that an account holder with £1,000 in a NatWest account could see that shriveling to £999 or less the following year as the bank charges a negative rate of interest.
In its letter to customers, NatWest said: “Global interest rates remain at very low levels and in some markets are currently negative. Dependent on future market conditions, this could result in us charging interest on credit balances.” The taxpayer-owned bank – whose parent is Royal Bank of Scotland – said it had no plans to make changes to the terms and conditions of personal account holders to allow it to charge negative rates. Interest rates on government and corporate bonds fell steeply in the political tumult that followed the Brexit vote. The Bank of England is under intense pressure to cut its already historically low base rate from 0.5% to kick-start the economy, although a move into negative territory is not likely in the short term. NatWest business customers are asking if negative interest rates are legal. They are asking whether they should take their cash out of the accounts and put it under the mattress to maintain its value. One treasurer of a local community council, who received a letter but asked not to be named, said: “Can they do that, is it legal?
The letter goes on to say that they ‘value our relationship with you’, but I may need to review how much I can afford to have a relationship with them!” Another customer, who holds funds for her grandchildren in a business bank account, said: “Will this spread to all high street banks? I can’t access it myself to put it under the mattress.” Other high street banks said that they had no plans, to change contracts to allow them to impose negative rates. The prospect of banks levying a charge on deposits rather than paying interest turns traditional banking upside down. “It is going to make businesses much less keen to hold significant balances in their accounts,” said mortgage and savings expert. “If NatWest starts doing this, other banks are likely to follow. Eventually personal customers with large balances could be hit, but the banks may decide that is going too far and take the hit themselves.” Negative interest rates could have widespread unenviable effects across the economy. Banks may take excessive risks in lending in order to obtain returns, while pension companies will struggle to meet their liabilities. So-called “voodoo banking” is already happening in some countries gripped by deflation.
Q-1 As per your reading, which of the following statements are related to voodoo banking?
01. Banking is the provision of services by a bank to individual consumers, rather than to companies, corporations or other banks.
02. It is the sort of banking where a majority stake, i.e. more than half is held by a government.
03. Voodoo Banking gimmicks artificially boost the bottom line by inflating revenue or concealing expenses or both.
04. In voodoo banking, the customers need not fill up any pay-in slips or draw cheques for depositing or withdrawing money from their accounts.
05. It is present in the economies where there is reduction of the general level of prices.
Q-2 With reference to the passage, mention the reason behind the introduction of negative interest rates.
01. So as to maintain parity between interest rates.
02. In order to demote people who have employed themselves.
03. In order to decrease the number of people having bad-debts
04. So as to maintain the banks’ dominance in the market.
05. Not mentioned in the passage.
Q-3 Which of the following sentences can be TRUE, according to the passage?
A. The prospect of banks levying a charge on deposits rather than paying interest turns traditional banking upside down
B. Personal customers with large balances could never be hit.
C. Negative interest rates had been introduced in Britain.
01. Only A
02. Only B
03. Both A and B
04. Both A and C
05. All of the above
Q-4 As per the passage, why has the interest rates on corporate and government bonds plummeted?
01. Owing to the turkey turmoil
02. Owing to the Brexit vote post political upheaval
03. Owing to negative rates
04. Owing to charging interest on credit balances
05. Owing to perpetual persuasion of Brexit
Q-5 Which of the following sentences is NOT TRUE, according to the passage?
01. The interest rates across the world continue to be at very low levels and in some markets are currently negative.
02. There hasn’t been any upheaval in the conventional banking system.
03. There has been a constant enquiry whether the negative interest rates are legitimate or not.
04. Those personal customers who have a huge bank balance could be hit.
05. In pursuit of getting returns, banks may take on more risk.
Q-6 Which of the following steps need to be taken by the Bank of England as soon as possible?
01. Diversifying big corporations
02. Maintaining its market integrity
03. Become a treasurer to a local community council
04. To slash the below average base rate so as to boost the economy
05. To bestow negative rates
Q-7 Choose the word most SIMILAR in meaning to the word given in bold, as used in the passage.
Tumult
01. Turmoil
02. Trepidation
03. Siege
04. Ruffled
05. Rift
Q-8 Choose the word most SIMILAR in meaning to the word given in bold, as used in the passage.
Shrivel
01. developed
02. contract
03. expand
04. growth
05. resurrected
Q-9 Choose the word which is most nearly the OPPOSITE in meaning to the word given in bold as used in the passage.
Unenviable
01. appealing
02. diabolical
03. conglomeration
04. useless
05. unlikable
Q-10 Choose the word which is most SIMILAR in meaning to the word given in bold as used in the passage.
Levy
01. Stalk
02. Cache
03. Mulct
04. Trove
05. Disband
Solution:
1. (5) The answer can be inferred from the third paragraph.
2. (5) The answer has not been mentioned in the passage.
3. (4) Option B is false which is given in the third paragraph
4. (2) The answer is given in the second paragraph.
5. (2) The answer is given in the mid of the third paragraph.
6. (4) The answer is given in the second paragraph.
7. (1) Tumult (n) – a state of confusion or disorder.
8. (2)
9. (1) Unenviable (adj.) – difficult/undesirable, or unpleasant.
Appealing (adj.) – attractive or interesting.
10. (3) Mulct (v) – extract money from (someone) by fine or taxation.
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